Asian stocks rose with European equity futures, as copper and gold prices at record highs boosted commodity-related firms. The rally was also supported by expectations for eventual Federal Reserve interest-rate cuts.
The MSCI AC Asia Pacific Index advanced for a seventh day, with the materials sector posting the biggest percentage increase. Equity gauges for Japan, China, Hong Kong and Australia all marched higher, and futures for European and the US pointed to gains.
The timing of the Fed’s likely pivot to rate cuts has shaped trading across financial markets in recent days. The Dow Jones Industrial Average of blue chips closed above 40,000 for the first time on Friday, and optimism about US easing helped gold surge to an all-time high on Monday.
Resilient corporate earnings have helped bolster sentiment. Investors are keeping an eye on the Middle East after Iranian President Ebrahim Raisi and the nation’s Foreign Minister died in a helicopter crash. “Copper hit record high and other commodity prices are strong, so the market is playing the theme of a recovery in the global economy,” said Yuya Fukue, a trader at Rheos Capital Works Inc. in Tokyo. Bloomberg’s dollar index edged lower after dropping last week when data showed US inflation eased more in April than economists expected.
